We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AVO invests in ripening centers and packhouses to boost scale, efficiency and operating leverage.
Mission Produce Inc. (AVO - Free Report) , a global leader in sourcing, producing and distributing fresh produce, is navigating a critical phase in its growth journey. Amid a dynamic agricultural market shaped by shifting consumer preferences and global supply chain pressures, the company is leaning into a volume-driven strategy to strengthen its competitive positioning. With robust demand for healthy, convenient fruits like avocados, mangos and blueberries, AVO is aggressively scaling its operations across key geographies to capitalize on long-term consumption trends.
Mission Produce has reported a significant increase in volume across its core product categories, especially avocados, mangos and blueberries. Avocado volumes are poised to surge, with the Peruvian crop expected to increase by more than 100% this season, following a weather-hit harvest last year. Similarly, record mango volumes and expanded blueberry acreage have bolstered overall production. AVO’s strong grower relationships and global sourcing flexibility have allowed the company to secure products from multiple regions, supporting its ability to meet rising global demand and penetrate new markets like Europe and the U.K.
However, this volume surge comes with the challenge of managing downward price pressure. AVO expects avocado prices to decline by 10-15% year-over-year due to greater supply in the U.S. and international markets. While this could boost overall consumption, it also compresses gross margins. In the second quarter of 2025, although average per-unit selling prices rose, margin pressure was evident due to sourcing challenges in Mexico and tariff-related costs. The company notes that rising volumes can hurt profits if not backed by strong efficiency.
AVO Faces Stiff Competition From CVGW & FDP
Mission Produce operates in a highly competitive fresh produce market, facing rivalry from both global and regional players specializing in avocados and other perishable fruits. Key competitors include Calavo Growers, Inc. (CVGW - Free Report) and Fresh Del Monte Produce Inc. (FDP - Free Report) .
Calavo is a well-established company in the avocado sector, known for its integrated operations that span from farming and packing to marketing and distribution. The company has a strong presence in both fresh and processed avocado products, including guacamole and other value-added items. Calavo serves a broad customer base across retail, foodservice and wholesale channels. Its strategy emphasizes product quality, consistent supply and expanding its value-added portfolio to drive growth. However, Calavo has also faced challenges tied to sourcing complexities in Mexico and operational disruptions, which it is working to mitigate through diversification and efficiency initiatives.
Fresh Del Monte is a global leader in fresh and prepared produce, offering a wide range of fruits and vegetables, including avocados, pineapples and melons. The company operates a vertically integrated business model, giving it tight control over its supply chain from production to distribution. FDP is focused on enhancing profitability through supply chain optimization, innovation in higher-margin products like fresh-cut produce and strategic growth in emerging markets. Its avocado business has been a key area of growth, supported by infrastructure investments and acquisitions aimed at expanding its global sourcing and processing capabilities.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have gained 15.1% in the last three months compared with the industry’s growth of 14.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 23.97X, significantly above the industry’s average of 15.36X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 20.3% for both years. The estimates for fiscal 2025 and 2026 have been unchanged in the past seven days.
Image: Bigstock
Volume Up, Price Down: Can AVO Balance Growth With Profitability?
Key Takeaways
Mission Produce Inc. (AVO - Free Report) , a global leader in sourcing, producing and distributing fresh produce, is navigating a critical phase in its growth journey. Amid a dynamic agricultural market shaped by shifting consumer preferences and global supply chain pressures, the company is leaning into a volume-driven strategy to strengthen its competitive positioning. With robust demand for healthy, convenient fruits like avocados, mangos and blueberries, AVO is aggressively scaling its operations across key geographies to capitalize on long-term consumption trends.
Mission Produce has reported a significant increase in volume across its core product categories, especially avocados, mangos and blueberries. Avocado volumes are poised to surge, with the Peruvian crop expected to increase by more than 100% this season, following a weather-hit harvest last year. Similarly, record mango volumes and expanded blueberry acreage have bolstered overall production. AVO’s strong grower relationships and global sourcing flexibility have allowed the company to secure products from multiple regions, supporting its ability to meet rising global demand and penetrate new markets like Europe and the U.K.
However, this volume surge comes with the challenge of managing downward price pressure. AVO expects avocado prices to decline by 10-15% year-over-year due to greater supply in the U.S. and international markets. While this could boost overall consumption, it also compresses gross margins. In the second quarter of 2025, although average per-unit selling prices rose, margin pressure was evident due to sourcing challenges in Mexico and tariff-related costs. The company notes that rising volumes can hurt profits if not backed by strong efficiency.
AVO Faces Stiff Competition From CVGW & FDP
Mission Produce operates in a highly competitive fresh produce market, facing rivalry from both global and regional players specializing in avocados and other perishable fruits. Key competitors include Calavo Growers, Inc. (CVGW - Free Report) and Fresh Del Monte Produce Inc. (FDP - Free Report) .
Calavo is a well-established company in the avocado sector, known for its integrated operations that span from farming and packing to marketing and distribution. The company has a strong presence in both fresh and processed avocado products, including guacamole and other value-added items. Calavo serves a broad customer base across retail, foodservice and wholesale channels. Its strategy emphasizes product quality, consistent supply and expanding its value-added portfolio to drive growth. However, Calavo has also faced challenges tied to sourcing complexities in Mexico and operational disruptions, which it is working to mitigate through diversification and efficiency initiatives.
Fresh Del Monte is a global leader in fresh and prepared produce, offering a wide range of fruits and vegetables, including avocados, pineapples and melons. The company operates a vertically integrated business model, giving it tight control over its supply chain from production to distribution. FDP is focused on enhancing profitability through supply chain optimization, innovation in higher-margin products like fresh-cut produce and strategic growth in emerging markets. Its avocado business has been a key area of growth, supported by infrastructure investments and acquisitions aimed at expanding its global sourcing and processing capabilities.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have gained 15.1% in the last three months compared with the industry’s growth of 14.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 23.97X, significantly above the industry’s average of 15.36X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 20.3% for both years. The estimates for fiscal 2025 and 2026 have been unchanged in the past seven days.
Image Source: Zacks Investment Research
AVO stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.